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Disgraced minister Peter Penashue launches unofficial re-election bid

Peter Penashue launches byelection campaign after stepping down under a cloud over illegal campaign donations accepted in 2011 election.

Former Conservative MP and cabinet minister Peter Penashue, pictured in November 2012, says he'll run again in Labrador in an effort to clear the air over election funding irregularities. (Andrew Vaughan / THE CANADIAN PRESS file photo)

OTTAWA—Peter Penashue, who quit Stephen Harper’s cabinet under a cloud over illegal campaign donations, has unofficially launched his re-election campaign with the enthusiastic backing of his Tory colleagues.

Just days after stepping down as intergovernmental affairs minister, Penashue has a campaign website up and running that touts his achievements as MP for Labrador and seeks donations for his bid to win back his seat.

But opposition MPs are calling on the government to delay calling the byelection until Elections Canada has completed its probe of Penashue’s election finances and whether further sanctions are coming.

“If Stephen Harper believes in our parliamentary institutions, and the rule of law and democracy, in the current circumstance, he will wait at least until Elections Canada has finished its work before calling a byelection,” NDP Leader Thomas Mulcair told reporters Monday.

“We’ll see whether he respects democracy or not.”

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Penashue quit his cabinet post and political job last week to run again in a byelection, saying he wanted to clear the air after admitting his campaign accepted illegal donations during his successful 2011 election campaign.

Elections Canada records reveal that Penashue took 28 illegal donations, including $18,710 from Provincial Airlines and another $27,850 that included corporate donors, which is illegal.

Penashue began repaying the cash last fall with a cheque for $26,850 to the government and another payment of $18,710 on March 4, 10 days before he resigned.

The Conservative Party of Canada helped Penashue cover the cost of the reimbursements, transferring a total of $44,350 to his campaign in three payments – two last November and one on March 1, 2013.

In the Commons Monday, opposition MPs took aim at Penashue for blaming the financial screw-up on campaign volunteer Reg Bowers, who later got a patronage post.

“The gig is up for former minister Penashue,” said Liberal MP Scott Andrews (Avalon).

“Prohibited corporate donations, fraudulent invoicing and illegal loans were all used to buy an election. Instead of condemning these illegal practices, the prime minister has used taxpayer dollars to repay this dirty money,” Andrews said.

But Tory MPs rose to Penashue’s defence in the Commons, claiming he had delivered federal benefits to his remote riding.

“Mr. Penashue has taken responsibility for mistakes that were made on his campaign and a byelection will be called,” Heritage Minister James Moore said.

“Mr. Penashue will have the opportunity to remind the people of Labrador of his hard work over the past two years as their representative, including delivering on infrastructure commitments and important job-creation initiatives,” Moore said.

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